FOX.TA WACC - Weighted Average Cost of Capital
The WACC of Fox Wizel Ltd (FOX.TA) is 7.9%.
| Range | Selected | |
| Cost of equity | 8.9% - 14.0% | 11.45% |
| Tax rate | 23.5% - 24.1% | 23.8% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 6.0% - 9.7% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 4.8% | 5.3% |
| Equity market risk premium | 6.1% | 7.1% |
| Adjusted beta | 0.67 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.9% | 14.0% |
| Tax rate | 23.5% | 24.1% |
| Debt/Equity ratio | 0.98 | 0.98 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 6.0% | 9.7% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FOX.TA | Fox Wizel Ltd | 0.98 | 1.26 | 0.72 |
| 2726.T | PAL Group Holdings Co Ltd | 0.04 | -0.47 | -0.46 |
| 330.HK | Esprit Holdings Ltd | 6.39 | 0.64 | 0.11 |
| 3709.HK | EEKA Fashion Holdings Ltd | 0.26 | 0.3 | 0.25 |
| 7545.T | Nishimatsuya Chain Co Ltd | 0.01 | 0.11 | 0.11 |
| 8185.T | Chiyoda Co Ltd | 0.02 | 0.67 | 0.66 |
| 887.HK | Emperor Watch & Jewellery Ltd | 0.16 | 0.35 | 0.31 |
| ARVINDFASN.NS | Arvind Fashions Ltd | 0.19 | 1.25 | 1.09 |
| AX1.AX | Accent Group Ltd | 0.6 | 1.09 | 0.75 |
| CRSO.TA | Carasso Motors Ltd | 1.59 | 1.78 | 0.8 |
| PMV.AX | Premier Investments Ltd | 0.15 | 1.43 | 1.28 |
| Low | High | |
| Unlevered beta | 0.31 | 0.72 |
| Relevered beta | 0.51 | 1.22 |
| Adjusted relevered beta | 0.67 | 1.15 |
FOX.TA's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for FOX.TA:
cost_of_equity (11.45%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.67) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.